A BMO Capital Markets note covered the company's
recently announced progress, which included moving toward 'proof of concept
for development.'
In a Sept. 4 research report, analyst Andrew Kaip with BMO Capital Markets
indicated that Sabina Gold & Silver Corp. (SBB:TSX; RXC:FSE;
SGSVF:OTCPK) has "provided the first step towards demonstrating
proof of concept for development of the Back River project in Nunavut."
It did so by completing the building the infrastructure there, including a
marine laydown area and a sealift. Further, the company finished it before
the targeted completion date.
The cost to develop the infrastructure was CA$24 million, which compares
to the CA$22.6 million, excluding contingencies, that were budgeted.
"Sabina got more for dollars spent with improvements made to the laydown
site, including an airstrip, larger laydown pads and the purchase of
construction equipment," he added.
The company also received its first sealifted portion of supplies at Back
River.
Earlier in the year, in March, Sabina transported equipment and supplies
by a Cat Train along its planned winter ice road route to the place where the
laydown was to be constructed, essentially testing the passageway in advance.
Next, Sabina will use that ice road to get equipment to Back River for the
start of site construction in 2019.
Before then, the company is expected to release drill results for the
Nuvuyak zone, "where the discovery hole released last month intersected
11.6 grams per ton gold over 39.5 meters," Kaip stated.
BMO has an Outperform rating and a CA$3 per share target price on Sabina.
Its current share price is around CA$1.35.
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Disclosures from BMO Capital Markets, Sabina Gold & Silver,
Sept. 4, 2018
IMPORTANT DISCLOSURES
Analyst's Certification
I, Andrew Kaip, hereby certify that the views expressed in this report
accurately reflect my personal views about the subject securities or issuers.
I also certify that no part of my compensation was, is, or will be, directly
or indirectly, related to the specific recommendations or views expressed in
this report.
Analysts who prepared this report are compensated based upon (among
other factors) the overall profitability of BMO Capital Markets and their
affiliates, which includes the overall profitability of investment banking
services. Compensation for research is based on effectiveness in generating
new ideas and in communication of ideas to clients, performance of
recommendations, accuracy of earnings estimates, and service to clients.
Analysts employed by BMO Nesbitt Burns Inc. and/or BMO Capital Markets
Limited are not registered as research analysts with FINRA. These analysts
may not be associated persons of BMO Capital Markets Corp. and therefore may
not be subject to the FINRA Rule 2241 restrictions on communications with a
subject company, public appearances and trading securities held by a research
analyst account.
Company Specific Disclosures
Disclosure 2: BMO Capital Markets has provided investment banking services
with respect to Sabina Gold & Silver within the past 12 months.
Disclosure 4: BMO Capital Markets or an affiliate has received compensation
for investment banking services from Sabina Gold & Silver within the past
12 months.
Disclosure 6A: Sabina Gold & Silver is a client (or was a client) of BMO
Nesbitt Burns Inc., BMO Capital Markets Corp., BMO Capital Markets Limited or
an affiliate within the past 12 months: A) Investment Banking Services.
For Important Disclosures on the stocks discussed in this report,
please click here.
